US embassy cable - 05LIMA2509

UNCLAS LIMA 002509 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR WHA/AND, WHA/EPSC, EB/CIP 
COMMERCE FOR 4331/MAC/WH/MCAMERON 
USTR FOR KENNETH SCHAGRIN, JONATHAN MCHALE 
FCC INTERNATIONAL BUREAU FOR ETALAGA 
 
E.O. 12958: N/A 
TAGS: ECPS, ECON, ETRD, EINV, PE 
SUBJECT: TELECOMS REGULATOR ISSUES TEMPORARY MOBILE 
TERMINATION RATE 
 
REF: A) Lima 2027   B) Lima 7035   C) Lima 566 
 
1.  (SBU) Summary.  On May 26, Peruvian telecommunications 
regulator OSIPTEL issued a temporary mobile termination rate 
of $0.2053 for all carriers.  According to OSIPTEL President 
Edwin San Roman, OSIPTEL is still working to establish a 
cost-based mobile termination rate, which should be 
published for public comment by mid-June.  OSIPTEL, however, 
will not likely impose a permanent mobile termination rate 
by the June deadline.  End Summary. 
 
2.  (SBU) Despite previous protests by OSIPTEL President 
Edwin San Roman that OSIPTEL could not establish a temporary 
mobile termination rate (ref B), on May 26, OSIPTEL 
established a new termination rate of $0.2053 for all 
carriers.  The previous rate varied from $0.25 to $0.23, 
depending upon the carrier.  (Note:  OSIPTEL, not wanting to 
look hypocritical, refuses to acknowledge that the new rate 
is a "temporary one."  End Note.)  This rate is the same as 
the former mobile-to-fixed rate, which has since been 
lowered to $0.067 in February 2005 (ref C).  According to 
San Roman, this new rate should send a signal to the market 
that OSIPTEL will regulate mobile termination rates.  The 
new rate also reflects OSIPTEL's belief that mobile 
termination rates should be based on a symmetrical model - 
the rate should be applied uniformly to all carriers 
regardless of the network of origin of the call. 
 
3.  (SBU) San Roman continues to reassure Post that OSIPTEL 
is working on establishing a cost-based model that will be 
used to further regulate mobile termination rates.  He noted 
that the draft resolution should be finished and published 
by mid-June, for a 20-day public comment period.  Shortly 
thereafter, he explained, the new rate should take effect. 
 
4.  (SBU) Comment.  While the issuance of a temporary mobile 
termination rate shows that OSIPTEL is prepared to regulate 
the market, $0.20 is still higher than the international 
benchmark of $0.16.  Moreover, despite lip service from San 
Roman, OSIPTEL does not appear to be prepared to meet its 
June deadline for a new lower mobile termination rate.  We 
will continue to pressure OSIPTEL to meet its deadline. 
Post believes that USTR should raise this issue during the 
current FTA round in Guayaquil.  End Comment. 
 
STRUBLE